H.R. 7610 creates a new tax credit of up to $2,000 per year for adult children who live with and care for aging relatives in multigenerational households. To qualify, the adult caregiver must be at least 18 years old, share a home with a qualifying relative (age 55 or older) for at least six months per year, and provide at least 10 hours per week of assistance to someone with functional limitations. The qualifying relative must need help with at least one activity of daily living (such as bathing or eating) and three instrumental activities of daily living (such as meal preparation or managing finances), and this condition must last at least 180 days. The credit phases out by one percent for each dollar of adjusted gross income above $75,000 ($150,000 for joint filers), and taxpayers can claim the credit for no more than two qualified relatives per year. The bill takes effect for tax years beginning after December 31, 2026, and is based on research suggesting that multigenerational caregiving reduces depression, improves health outcomes for seniors, and decreases nursing home admissions.
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